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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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Date of Report (Date of earliest event reported): May 18, 1998
TREEV, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-22970 54-1590649
(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification Number)
incorporation or
organization)
500 Huntmar Park Drive, Herndon, Virginia 20170
(Address of principal executive offices) (Zip code)
(703) 478-2260
(Registrant's telephone number, including area code)
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<PAGE>
Item 5. OTHER EVENTS.
On May 19, 1998, the Company issued a press release that provided
certain information regarding organizational changes aimed at saving $4,800,000
annually. A copy of the press release is attached hereto as Exhibit 99.1 and is
incorporated herein by reference.
As a part of those organizational changes, the Company promoted David
E. MacWhorter, the Company's senior vice president of marketing, to President
and Chief Operating Officer. James J. Leto will remain Chairman and Chief
Executive Officer. Mr. MacWhorter will oversee the day to day operations of the
Company. Prior to joining the Company, he was President of Kyocera Electronics'
printer division. He has also held senior management positions at Wang, Sony and
IBM.
The Company also eliminated 30 management and staff positions and
consolidated its operations. The Company eliminated the position of Senior Vice
President of Engineering. John M. Flowers, Jr., who held that position, pursuant
to an agreement with the Company for continued employment, is entitled to
receive severance equal to one-half his annual compensation and the continuation
of health and life insurance benefits. In an effort to reduce expenses, James
Leto elected to cut his salary by over 50% in exchange for stock options.
Item 7. EXHIBITS
Exhibit Number Description
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99.1 Press Release dated May 19, 1998.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, TREEV, Inc.
has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
TREEV, INC.
Date: June 1, 1998 By: /s/ Jorge R. Forgues
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Jorge R. Forgues
Senior Vice President of Finance and
Administration, Chief Financial Officer
and Treasurer
(Principal Financial Officer and
Chief Accounting Officer)
Exhibit 99.1
TREEV(R) ANNOUNCES ORGANIZATIONAL CHANGES
AIMED AT SAVING $4.8 MILLION ANNUALLY
Company to Take $1.5 Million One Time Charge to Streamline Operations;
Chairman and CEO Elects to Reduce Pay
HERNDON, Va.--May 19, 1998--TREEV, Inc. (NASDAQ/NMS:TREV), formerly Network
Imaging Corporation, today announced organizational changes to further
streamline its operations. Effective mmediately, David MacWhorter--the Company's
senior vice president of marketing--will assume additional responsibilities as
President and Chief Operating Officer. James Leto will remain Chairman and Chief
Executive Officer. The Company has also eliminated 30 management and staff
positions and consolidated its operations.
"When I started with TREEV two years ago, I initiated a plan to address
three fundamental issues with this Company," commented Leto. "Those issues were:
correcting the Company's balance sheet; marketing and selling our Company's
products; and, rationalizing our organizational structure. Improving the balance
sheet was the first issue to be addressed. We spent much of 1996 and 1997 fixing
this Company's finances. At the end of 1997, we accomplished this goal.
"The second issue I tackled was how to better market and sell the
Company's products. I believe that our core products are superior to others in
the market. We needed time, however, to develop these products into an
integrated document management suite that customers were looking for. At the
AIIM '98 (Association for Information and Image Management) trade show last
week, we demonstrated our new, fully integrated software products. Our
OmniTREEV(TM), AutoTREEV(TM), DocuTREEV(TM), and DataTREEV(TM) products were
very well received. According to reviews by Doculabs--an independent testing
laboratory in Chicago, IL--DocuTREEV set the benchmark for large scale
deployments and flexibility for vertical applications. DataTREEV set the
benchmark for processing volume, retrieval user volume and database volume.
Doculabs' favorable review validates not only our corporate integrated document
management strategy but also our products in the marketplace.
"The last issue to be addressed concerned the organizational structure
of the Company. Over the last two years, I have consolidated the development,
operations, marketing, and sales organizations. After a critical assessment, I
determined that 30 additional management and staff positions from all divisions
of the Company could be eliminated or streamlined into other existing positions.
These positions have been eliminated effective May 18, 1998. TREEV is now an
efficient organization that is well positioned to achieve profitability.
"With this organizational restructuring, I am promoting David
MacWhorter to President and Chief Operating Officer to oversee the day-to-day
operations of the Company. David has held senior management positions at Kyocera
Electronics, Wang, Sony and IBM and is well-suited for managing the operations
of this Company. I will devote 100% of my efforts to creating strong business
alliances and building relationships with existing and prospective customers.
<PAGE>
"My commitment to our shareholders is to achieve profitability by the
latter part of this year. I believe that we are now positioned to do this. To
achieve this goal, I have elected to cut my salary by over 50% in exchange for
stock options to help in the reduction of expenses and to bring us closer to
achieving profitability. The ownership of the Company's stock and the stock
options I have been granted provide a tremendous incentive to bring this Company
into the black." About TREEV TREEV(R) (formerly Network Imaging Corporation) is
a leading developer and marketer of integrated document management solutions.
Built on our award-winning patented object management technology, TREEV's suite
of software products extends a company's investment in legacy and client/server
applications by providing users with flexible, cost-effective document
management solutions. The Company's software is marketed through partners such
as Sybase (NASDAQ:SYBS), Lockheed Martin (NYSE:LMT), ALLTEL (NYSE:AT), EDS
(NYSE:EDS) and Intergraph Corporation (NASDAQ:INGR). For additional information
about TREEV's products or services, call (800) 254-0994, browse our website at
www.treev.com.
"Safe Harbor" statement under the Private Securities Litigation Reform Act of
1995: Except for historical information, all of the statements, expectations and
assumptions contained in the foregoing are forward looking statements that
involve a number of risks and uncertainties. Although the Company has used its
best efforts to be accurate in making these forward looking statements, it is
possible that the assumptions made by management are not necessarily the most
likely and may not materialize. In addition to those factors, other important
factors that could cause actual results to differ materially include the
following: business conditions and the amount of growth in the computer industry
and general economy; competitive factors; ability to attract and retain
customers; ability to attract business partners and maintain and increase their
levels of sales and marketing; ability to attract and retain personnel,
including key management personnel; and the risk factors set forth from time to
time in the Company's SEC reports, including but not limited to its annual
report on Form 10-K and its quarterly reports on Forms 10-Q.
TREEV(R) is a registered trademark of TREEV, Inc. All other products and brand
names are trademarks or registered trademarks of their respective owners.
